Cloud-Based IT Service Management (ITSM) Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,Canada,China,UK,Germany - Size and Forecast 2023-2027

Cloud-Based ITSM Market Forecast 2023-2027

The cloud-based ITSM market is forecast to increase by USD 6.09 billion estimated to grow at a CAGR of 15.08% between 2022 and 2027. The market thrives on various factors, notably the cost-effectiveness, scalability, and user-friendly nature of cloud-based ITSM solutions. As SMEs increasingly embrace cloud technologies, the market witnesses a surge in adoption, driven by the need for streamlined control and accountability. These cloud-based solutions offer flexibility and efficiency, catering to the evolving needs of businesses across diverse sectors, thereby propelling the market's growth trajectory. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Cloud-Based ITSM Market During the Forecast Period?

To learn more about this report, Download Report Sample

The market is witnessing substantial growth driven by several key factors. Firstly, the dominance of public cloud giants like Microsoft Corporation is reshaping the IT service management landscape, prompting organizations to adopt cloud-based ITSM solutions. Additionally, the trend towards multi-cloud adoption, especially among startups and SMEs, is fueling the demand for flexible and scalable ITSM services. Moreover, legacy applications are being migrated to the cloud, necessitating robust cloud-based ITSM solutions to address security gaps and ensure seamless integration with existing hardware and services. Furthermore, the emergence of 5G technology is enhancing the capabilities of cloud-based ITSM platforms, enabling faster and more efficient delivery of IT services. As a result, the Global Cloud-Based ITSM Market is experiencing rapid expansion, driven by the increasing need for managed cloud IT services and the growing demand for comprehensive ITSM solutions to support modern business environments.

Market Dynamics and Customer Landscape

The market is witnessing exponential growth, driven by the increasing adoption of cloud computing solutions by digital enterprises. IT service providers are leveraging AI platforms to address security concerns in remote working environments and facilitate digital transformation. With the rise of the hybrid workplace model, multi-cloud adoption is becoming prevalent, bridging the gap between legacy applications and modern infrastructure. Security gaps are being addressed through managed cloud IT services, while the integration of 5G technology and IoT is enhancing connectivity and productivity. Software, hardware, and services are converging in this dynamic market, attracting startups and SMEs, with major players like Microsoft Corporation leading the way. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The growing need for control and accountability is the key factor driving the global market growth. An accurate definition of process responsibilities comes from process standardization. It clearly explains what to expect when ownership is well-defined. Business success and growth results depend on individual efforts. When assigned specific tasks, IT staff are responsible for contributing to the success of their departments and organizations. ITSM technology cannot escape the digitization and cloud-enabled speed of modern IT solutions. By establishing clear ownership of activities and processes, cloud-based ITSM solutions can aid in enhancing accountability.

For instance, the ITSM platform can be used to establish a central knowledge base, ensuring that all data is kept in one location. It is simple for anyone who needs to access it to do so, and tracking changes is simple. It also enables businesses to monitor adherence to corporate policies and procedures. This is crucial for auditing purposes and can assist in spotting possible issues before they have a significant impact. Thus, the growing need for control and accountability is one of the major drivers that are expected to drive the growth of the global could-based ITSM market during the forecast period.

Significant Market Trends

The growing adoption of the remote working model is the primary trend in the global market growth. The work-from-home model has become a new standard for businesses following the rapid shift to remote work brought on by the COVID-19 pandemic. This offers a fantastic chance for a cloud-based ITSM solution to show that it is adaptable enough to assist workers wherever they are, whether that be at work, at home, or on the go. Integrations between service desks and cloud-based remote support systems can give IT employees rapid access to any support-related data from any internet-connected device.

While IT professionals address incidents behind the scenes, the user can continue functioning. No matter where the support team (or end-users) is situated, communication is quick, simple, and convenient. Cloud ITSM is a technological concept that enables organizations and business processes to maximize their business values by adopting information technology services. The cloud-based software services enable efficient planning, designing, operating, delivering, and controlling of several IT aspects to cater to customer demand. Thus, the growing adoption of the remote working model is one of the growing trends that is expected to drive the growth of the cloud ITSM market during the forecast period.

Major Market Challenge

Growing integration concern in business organizations is a major challenge to the global cloud-based IT service management market growth. One of the biggest issues that organizations confront is the process of integrating two or more IT systems. One of the main problems that businesses have when transferring information is the absence of standard methods and integration challenges for various IT systems and their communication protocols. Companies have been expanding recently through alliances, mergers, and acquisitions, as well as acquiring sophisticated and heterogeneous IT environment components.

Moving to the cloud in such a situation becomes a significant issue for many firms. Considering their current IT architecture, businesses struggle to identify the best cloud ITSM solutions and strategies to integrate them effectively. The difficulty of integrating potential ITSM solutions with their complicated heterogeneous environment must be overcome as more businesses move their operations to the cloud, which comes at a higher overhead cost. This can become a major challenge for the growth of the cloud ITSM market during the forecast period.

Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Cloud-Based ITSM Market Customer Landscape

Who are the Major Cloud-Based ITSM Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Atlassian Corp. Plc - The company offers cloud-based ITSM such as Jira service management. Also, under this segment, the company offers online project management software that includes Jira software, project, and issue tracking, Jira service management icon, Jira align, and enterprise agile planning.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Alemba Ltd.
• BMC Software Inc.
• Broadcom Inc.
• Citrix Systems Inc.
• EasyVista SA
• Efecte Oyj
• Freshworks Inc.
• Hewlett Packard Enterprise Co.
• Hornbill Corporate Ltd.
• International Business Machines Corp.
• ITarian LLC
• Ivanti Software Inc.
• Micro Focus International Plc
• Microsoft Corp.
• OPGK RZESZOW S.A.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

This report extensively covers market segmentation by component (solutions and services), end-user (IT and telecom, retail and consumer goods, BFSI, healthcare and life sciences, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). In the market, IT service providers leverage cloud computing to offer cost-effective solutions for digital enterprises, including small and medium-sized businesses. These cloud-based applications streamline IT service management (ITSM), addressing IT infrastructure costs while supporting digital transformation. They integrate artificial intelligence (AI) platforms to enhance efficiency and mitigate security concerns. Amid the rise of the hybrid workplace model, these solutions facilitate seamless collaboration through meeting software and video/audio conferences. Public cloud giants like Microsoft Azure, Amazon Web Services (AWS), Google Cloud, and Oracle Corporation contribute with scalable infrastructure, further advancing cloud-based ITSM capabilities.

By Component

The market share growth by the solutions segment will be significant during the forecast period. Solutions accounted for a significant portion of the global cloud-based ITSM market by component in 2022, and it is anticipated that they will continue to hold this position during the forecast period. The requirement for management to develop, plan, operate, deliver, and control the cloud and IT services is the fundamental driver of demand for cloud-based ITSM solutions.

Get a glance at the market contribution of various segments Request a PDF Sample

The solutions segment was valued at USD 2.30 billion in 2017 and continue to grow by 2021. A factor further driving the demand for cloud-based ITSM solutions is the rise in the number of developers who want to manage the size of an organization after it has been produced to guarantee performance and availability in accordance with service level objectives (SLOs) or service level agreements (SLAs). The service portfolio management, configuration and change management, service desk software, operations and performance management, and dashboard reporting and analytics segments are used to categorize the market based on solutions. Owing to its user-friendliness and the developer's ability to display the required graphs and charts coupled with spreadsheets, the dashboard report and analytics sub-segment in the solutions segment is predicted to hold a sizable portion of the market during the forecast period.

Which are the Key Regions for the Cloud-Based ITSM Market?

For more insights on the market share of various regions Request PDF Sample now!

North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The cloud-based ITSM market in North America is anticipated to experience favorable growth during the forecast period owing to the presence of numerous solution providers in the US and the rising adoption of bring-your-own-device (BYOD) policies in the region. North America presents prospective growth opportunities as the region's technology adoption is increasing, and businesses are concentrating on providing superior customer experiences to set themselves apart from rivals. Moreover, The increasing adoption of hybrid and remote work models by the key companies operating in the region is focusing on developing remote support service solutions. For users who choose to use Freshworks software services, the alliance aims to offer cutting-edge remote assistance solutions. Such initiatives taken by companies in the region are expected to drive the growth of the cloud-based ITSM market in North America during the forecast period.

Market Analyst Overview

The market is experiencing rapid growth due to the increasing adoption of cloud computing and digital transformation initiatives by enterprises worldwide. Businesses, including Small and medium-sized businesses, are leveraging cloud solutions to enhance their IT infrastructure cost and effectively streamline operations. Cloud-based applications and Artificial intelligence (AI) platforms are empowering digital enterprises to innovate and stay competitive in the market. However, security concerns persist, driving the need for robust security measures. The hybrid workplace model, accelerated by 5G technology and IoT, is reshaping IT service management, prompting IT teams to embrace multi-cloud adoption and manage legacy applications effectively. Startups and established players like Microsoft Corporation are offering managed cloud IT services, including meeting software for seamless video/audio conferences, to address the evolving needs of modern organizations.

The market is witnessing significant traction as end users across various industries seek efficient IT support solutions. Public cloud giants like Google and AWS are leading the charge, offering platforms for IT practices and hardware management. However, security gaps remain a concern, prompting the adoption of solutions from providers like Hashicorp and Spiceworks Ziff Davis. In the remote-working environment, live streaming and virtual service and support agents powered by natural language processing and machine learning platforms are gaining prominence. Leading players such as BMC Helix, IBM Watson, and Cherwell Software are driving innovation in cognitive service management, catering to the growing demand for big data and IoT integration. The BYOD trend is shaping the services segment, emphasizing configuration and change management for seamless operations.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Component Outlook 
  • Solutions
  • Services

• End-user Outlook 
  • IT and telecom
  • Retail and consumer goods
  • BFSI
  • Healthcare and life sciences
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Cloud-Based ITSM Market Scope
Report Coverage	Details
Page number	172
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.08%
Market growth 2023-2027	USD 6.09 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	11.65
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 39%
Key countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Alemba Ltd., Atlassian Corp. Plc, BMC Software Inc., Broadcom Inc., Citrix Systems Inc., EasyVista SA, Efecte Oyj, Freshworks Inc., Hewlett Packard Enterprise Co., Hornbill Corporate Ltd., International Business Machines Corp., ITarian LLC, Ivanti Software Inc., Micro Focus International Plc, Microsoft Corp., OPGK RZESZOW S.A., ServiceNow Inc., SymphonyAI Summit, SysAid Technologies Ltd, and Zoho Corp. Pvt. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request PDF sample

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of the key market companies

We can help! Our analysts can customize this report to meet your requirements. Get in touch